Holding a UK Gambling Commission (UKGC) licence is important if you want to operate in the United Kingdom. Their view on crypto casinos isn’t a totally approving one though with concerns over how safe they are.
Their Treasury Committee came to the conclusion that cryptocurrencies should be referred to as crypto-assets if desiring an accurate description. This is because the opinion is their performance is not that which a currency would normally do. A recent UKGC release on cryptocurrencies concentrating on using the ‘crypto-assets’ term instead.
There have been licence applications made to the UKGC. A concern for the licensing body was the fact profits from investments in crypto-assets would be the way the business would be funded. That didn’t please the UKGC who also said that the applicants were finding it difficult to show the source of the funds that were listed in their licence application.
That is always a concern for the UKGC as they need assurance that money-laundering isn’t taking place. Recent months have seen the commission issue fines to licensees who they believe haven’t been doing enough to prove money-laundering hasn’t been occurring by site members.
Another area that the UKGC aren’t happy about is the anonymity that those using what they call crypto-assets have. Those making applications have struggled to provide what the UKGC would describe as “complete and satisfactory evidence.” If a licence is to be granted, then a full and complete history of the applicant’s source of funds is required.
Crypto casinos must be careful with their applications. If it is submitted with a fee paid and failure to confirm source of funds is the reason for it been turned down, there’s no refund for that fee. Here you can find the guide of the online casinos that also accept PayPal payments.
We all know that the value of cryptocurrencies tends to vary a great deal. This also concerns the UKGC who feel that this presents additional risks to customers. How for example would the fluctuating values affect any deposit limits that a site member may set for themselves?
If a licence is to be granted, then the applicant must prove to the UKGC that steps are being taken to deal with this potential problem. Steps need to be implemented to reduce risks at the same level that those licensees using regular currencies such as pound sterling do.
This isn’t just a problem occurring in the UK, there are also concerns in America. The American Gaming Association (AGA) believe that there is less concern over problem gambling and fraud with crypto currencies.
Less regulations on crypto casinos is a concern. The worry is that if only an email address is used to open an account, then anyone with a gambling problem who self-excludes themselves, can just sign up again using a different address.
The UK gambling industry is one that receives a lot of criticism. The 2005 Gambling Act is currently being reviewed and rightfully so. The gambling industry now compared to 17 years ago is so different.
Work that took place to create the 2005 Act didn’t include subjects such as online betting, betting on your phone and cryptocurrencies. The UK government is soon to release details of what changes are on the way. That big statement has been due for a while though. It will be interesting to see how the subject of cryptocurrencies will be handled.
